The paper describes global changes in the atmosphere and due to temperature rise, the effect on sea water levels rising day by day and year by year, threatening the parts of the world. Scarce resource of water gives another threat in smooth distribution due to its variation in time and space. Man's activity on the globe is affecting the cycle ofhydrology and therefore, planning and development of water on a sustainable basis poses problem. Impact ofirrigation projects on environmental is dual, beneficial and adverse, both of which can be taken care ofat the time of planning irrigation and hydropower projects, and remedial measures can be planned in such a way that they form in-built components of the overall projects. Stages in the project planning process are described in the paper. The paper brings out an overall better environmental advantages than adverse effects in case ofdevelopment ofirrigation and hydro-power projects. Case study of Ukai Project in Gujarat State of India is given.